Market Analysts: Oil Market Faces Multiple Pressures

In the early market close, the main domestic futures contracts saw more gains than losses. Polysilicon rose nearly 6%, palladium and**** (coke) were up over 5%, Shanghai silver increased over 4%, platinum and lithium carbonate rose nearly 4%, coking coal gained over 3%, and Shanghai tin was up nearly 3%. On the downside, SC crude oil fell nearly 5%, liquefied petroleum gas (LPG) and low-sulfur fuel oil (LU) dropped nearly 4%, fuel oil was down over 3%, and propylene, European shipping, monthly average polypropylene, and polypropylene all fell over 1%.

On June 11, Chery Automobile Co., Ltd. and Yinwang Intelligent Technology Co., Ltd. signed a deepening strategic cooperation agreement in Wuhu, Anhui, to carry out in-depth cooperation on L3 and L4 level autonomous driving technologies. Chery stated that the 15th Five-Year Plan period will be a critical phase for the implementation of L3 and L4 level autonomous driving. According to the agreement, Chery and Yinwang will accelerate technological breakthroughs and mass production implementation of L3 and L4 level autonomous driving during the 15th Five-Year Plan period.

According to foreign media reports,Dow has announced that its LCH3 steam cracking unit in Terneuzen, the Netherlands, has resumed operations. The cracker had previously delayed its planned maintenance, originally scheduled for June 2025, due to weak market conditions, and was subsequently shut down, remaining out of operation until now.In January 2025, Dow Chemical stated that it would suspend operations at the plant until market conditions improve. The cracker has a nameplate capacity of 680,000 metric tons of ethylene per year and 286,000 metric tons of propylene per year, and it was commissioned in 2000.

In May 2026, the cost support of crude oil for PE weakened. Domestic production increased while imports continued to decrease, leading to a slight overall increase in supply. The downstream sector is in a traditional demand off-season, with low enthusiasm for raw material procurement, which is bearish for the spot market. In June, cost support is expected to continue weakening, with an anticipated increase in domestic supply, and in the off-season for demand, the price focus of the PE market may continue to decline.

In May, China’s power and energy storage battery sales reached 182.2 GWh, up 11.0% month on month and 47.4% year on year.Among them, power battery sales reached 127.0 GWh, accounting for 69.7% of total sales, up 16.6% month-on-month and 45.2% year-on-year; energy storage battery sales reached 55.2 GWh, accounting for 30.3% of total sales, down 0.1% month-on-month and up 52.7% year-on-year.